Important info from Carbon Trust

The Carbon Trust has been monitoring how the current economic environment has been affecting customers who wish to take out interest free Energy-Efficiency loans. It is clear SME access to private sources of finance has been affected by the current market situation.

On the 19th November the Carbon Trust reduced the CO2 threshold by over 20% down from 2.57 tCO2 to 2 tCO2 per £1000 of loan offered. This means, for customers installing energy-efficient equipment which reduces their electrical consumption, a £5,000 loan could be offered for a reduction of less than 19,000 kWh. (Previously Circa 24,000 kWh)

For applications currently being processed where we have not made an unconditional loan offer the new threshold will apply and customers will be notified by the Financial Services administration team.

To see the effect of the new threshold on loan values for your projects, please use the online calculator at:

https://www.carbontrust-online.co.uk/carboncalculator/

Equally, given the current economic climate the Carbon Trust will permit until further notice the use of securitised debt (e.g. HP or Asset Finance) to fund the remainder of a customer's required total project cost. Security will only be permitted over that part of the debt which is not provided by the Carbon Trust. For example a business wishing to purchase equipment valued at £150,000 and the Carbon Trust provides a loan of £75,000. The securitised debt funder can only secure their funds on the £75,000 worth of the equipment. Other terms and conditions apply.